Net lending is down from £8,429m in the first six months of 2007 to £3,448m for the first half of 2008.
Gross lending totals at £2,985m for June 2008, compared with £4,653m in the previous period.
Approvals are also down for the first half of the year, falling from £4,068m in 2007 to £2,590m in June 2008. Net receipts for societies are down by £1570m year on year with net receipts to cash Isas provisionally forecasted down by £235m to £74m.
The savings market sees record inflows of £6,295m for the first half of 2008 up from £3,862m last year.
BSA director general Adrian Coles says: “It is no surprise that the lending figures for societies are so low. This reflects the depressed state of the housing market. Many societies have chosen to follow a conservative lending policy to ensure that they maintain the high quality of their loan books.”